Southwestern University Stadium Project A PERT/CPM Case Study

Presented to Ms. Emilina R. Sarreal of the Business Management Department, De La Salle University - Manila In partial fulfillment of the requirements in MANASCI

Submitted by Garcia, Amanda Elise Simbulan, Cyrene Pamela Umaly, Isabella Yu, Tedrick K37 On March 24, 2011

replied the Starr.Southwestern University Stadium Construction After six months of study. ”People. and to the disappointment of its athletic boosters. To delight of its students. one with built in dormitory rooms for his players palatial office appropriate for the coach of future NCAA champion team. he said with a sense of confidence. would not please everyone. Adding 21. The job now was to get construction going immediately after the 2007 season ended. did not respond. would learn to live with it. The influential football coach. 000 seats. sweating slightly. not just on time!” . Bo Pitterno. I want to be early. and everyone. Hill again reviewed the data. had reached a decision. In football-crazy Texas. Bob Hill looked at the tasks his engineers had outlined and looked President Starr in eye. including dozens of luxury skyboxes. president of Southwestern University. ”I guarantee the team will be able to take the field on schedule next year”. SWU would not be relocating to a new football site but would expand the capacity at its on-campus stadium. This would allow exactly 270 days until the 2008 season opening game. Dr. But the decision was made. signed the contract. much political arm wrestling. 000 per day for running late is nothing compared to what Coach Pitterno will do to you if our opening game with Penn State is delayed or cancelled. Back in his office. ”The contract penalty of 10. The contractor. Martin Starr. had long argued the need for a first class stadium. He then gathered his foreman. Hill Construction(Bob Hill being an alumnus.” Hill. if we’re not 75% sure we’ll finish this stadium in 270 days. ”I sure hope so”. including the coach. of course). and some financial analysis. Hill Construction would be mud if the 270-day target were missed. I want this project crashed! Give me the cost figures for a target date of 250 days-also for 240 days.

500 0 2. concrete footing for boxes Upgrading skyboxes. elevators Interior wiring. stadium seating Upgrading walkways. lathes Inspection approvals Plumbing Painting Hardware/air conditioning/ metal workings Tile/carpeting/windows Inspection Final detail work/cleanup A A C B E D. . stairwells.500 4.000 6. E G H H J I.000 1.500 3.Southwestern University Stadium Project TIME ESTIMATES (DAYS) ACTIVITY DESCRIPTION PREDECESSORS OPTIMISTIC MOST LIKELY PESSIMISTIC CRASH/COST DAY(S) A B C D E F G H I J K L Bonding.500 2.000 2. insurance. Develop a network drawing for Hill Construction and determine the critical path. how would Hill do so.500 1. What is the probability of finishing in 270 days? 3.900 9. assume that optimistic time estimates can be used as crash times. If it were necessary to crash to 250 or 240 days. tax structuring Foundation.000 0 4. K 20 20 50 30 25 1 25 10 20 8 1 20 30 65 60 50 30 1 30 20 25 10 1 25 40 80 100 100 35 1 35 30 60 12 1 60 1. and at what costs? As noted in the case. How long is the project expected to take? 2.

stairwells. tax structuring G Plumbing H Painting L Final detail work/ cleanup C Upgrading skyboxes. insurance. lathes I Hardware/air conditioning/ metal workings End A Start Bonding. The project is expected to take 240 days to finish. stadium seating D Upgrading walkways. . elevators J Tile/ carpeting/ windows K Inspection PATHS ABEF ABEGHIL ABEGHJKL ACDGHIL ACDGHJKL TIME 30+65+30+1 30+65+30+30+20+25+25 30+65+30+30+20+10+1+25 30+60+50+30+20+25+25 30+60+40+30+20+10+1+25 TOTAL TIME 126 225 211 240 196 The longest route time path route through the network drawing for Hill Construction is ACDGHIL.Network drawing for Hill Construction: F Inspection approvals B Foundation concrete footing for boxes E Interior wiring.

1111 44.96% Thus.4444 44.87 = 0.4444 = 319.4443 Project Standard Deviation = 319 .4444+136.55959709 = 55.96% chance that the expansion of the on-campus stadium can be accomplished in 270 days or less.4444 Project Variance = 11.Time Estimates (Days) for Hill Construction ACTIVITY A C D G H I L OPTIMISTIC 20 50 30 25 10 20 20 MOST PROBABLE 30 60 50 30 20 25 25 PESSIMISTIC 40 100 100 35 30 60 60 EXPECTED TIME 30 65 55 30 20 30 30 VARIANCE 11.4443 = 17.1111+44.87 days Z= 250 − 240 17 .1111+69. there is 55.4444 136.7778+11.7778 11.4444+44. .1111 2.1111+2.1111 69.

900 multiplied by 20 is $38. The duration of activity A can only be reduced by 10 days maximum. The next one to be crashed is activity D which has the cost of $1.900.000). thus $1.000 (15. The duration of activity A can only be reduced by 20 days maximum.000. thus cost of $1.000. On the other hand in order to crash to 250. we reduced two activities which has the lowest crash cost per day.000 (15. thus $1.To be able to crash to 240 days.900 multiplied by 10 is $19. we reduced it by 10 days only. this has the lowest cost of $1. we did the same procedure but instead of choosing reducing the duration of activity D by 20.500. . The total additional cost necessary to crash to 250 days is $34. First to crash is activity A.500 multiplied by 10 is $15.000+19.000). The total additional cost necessary to crash to 240 days is $53.000.000+38.

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